Monday, November 20th, 2017 MST

Snow Falcon silver coins not good buys

A telemarketing firm recently began promoting 1-1/2 oz Snow Falcon silver coins, minted by the Royal Canadian Mint.  We advise our clients to stay away from any silver bullion coins larger than one ounce.

Not only would 1-1/2 oz silver coins not be practical if the need ever came to use them as money, but specially minted coins rarely pick up higher premiums.  In fact, they normally lose their premiums, turning them into basic bullion coins.

Actually, 1/2 oz and 1/4 oz silver coins would be better buys; however, they sell at high premiums, comparable to the premiums on Snow Falcon silver coins.

The primary reason for buying government-minted one-ounce silver coins (such as American Silver Eagles, Royal Canadian Mint Silver Maple Leafs, Perth Mint Silver Kangaroos) is to have recognizable coins that could be used for commerce should dollars fail or become not widely accepted, as historically has happened when governments have printed too much fiat money.

If that happens, 1 oz coins would be too valuable for small transactions.  The Founding Fathers knew this when they passed the Coinage Act of 1792.

No one-ounce silver coins were called for, the largest silver coins being Trade Dollars and Silver Dollars containing .77 ounce of silver.  Half-dollars contained .36169 oz; quarters .18075 oz; and dimes .0723 oz.  U.S. 90% silver coins were minted 1794 through 1964.

Although billions of coins were minted, today 90% silver coins are relatively scarce.  Twenty years ago, an order for 100 bags ($1,000 face value) of pre-’65 US 90% silver coins could have been filled by a single phone call to any one of five wholesalers.  Today a 20-bag order would likely deplete the inventory of wholesalers that carry 90% silver coins.  A few wholesalers no longer trade in 90% silver coins.

Investors interested in small silver coins should go with pre-1965 US 90% silver  coins.  They were minted to be used as money, were used as money and could be used as money again.

2 Responses to “Snow Falcon silver coins not good buys”

  1. Tore Mikal Schanke

    Your advice is probably element. But, understood that some people are collecting the semi-numismatic coins and such, even though the size is curious. The Snow Falcon, is obviously a collecting item, in 1.5 ozt silver and 0.25 ozt gold. That is not for the general public, but designed for the people who want something special. And, no company is making small size silver and gold, that are fitting for trade, in the event of a major breakdown in the money supply.

    • Bill Haynes

      True, few small silver prices are not being produced, and the ones that are have huge premiums. Now, two points.

      One, coins produced for the collectors market rarely increase in price.

      Two, presently junk silver coins (pre-1965 US 90% silver coins) are selling at low premiums. These coins were minted to be used as money, were used as money and could be used for money again. 90% junk silver coins is an excellent way for small investors to buy silver.

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